Transforming Zimbabwe’s Dairy Value Chain for the Future

The Transforming Zimbabwe's Dairy Value Chain for the Future (TranZDVC) project aims to address the root causes of under-performance in the Dairy Value Chain (DVC) in Zimbabwe by strengthening the linkages between production, processing and financing. We Effect, in partnership with Zimbabwe Association of Dairy Farmers (ZADF), Zimbabwe Farmers Union (ZFU) and Zimbabwe Dairy Industry Trust (ZDIT), seek to improve the economic, social and environmental performance of the DVC and also create an enabling environment for a sustainable and inclusive dairy sector.

Work will be undertaken with public and private sectors, NGOs, government service departments, processors and input suppliers.

Targeting small-holder, medium-scale and large-scale anchor farms, the project aims to establish dairy hubs and inclusive business models. The dairy hubs will strengthen service provision around Milk Collection Centres (MCC) and milk bulking points. The out-grower dairy models are expected improve milk aggregation and bulking. Inclusive business models will leverage private sector dairy integrators to provide access to new and more secure markets, access to training and other business support services.

Key changes being aimed for include:

Increased productivity: feeding regimes that improve cow productivity from the current 3.6 litres per day per cow to above 15 litres per day per cow.

Improved access to finance: promoting the establishment of multilateral partnerships that leverage investments in dairy productive assets and infrastructure.

To boost Zimbabwe’s dairy livestock genetics, TranZDVC outsourced 200 in-calf heifers in February 2020 from Eastern Cape in South Africa. The first batch of 105 in-calf heifers arrived in Zimbabwe on 26 April 2020 via the Beitbridge Border post. The animals will undergo quarantine for the next 30 days at two Integrator sites at Coetzee Farm in Kweke, Midlands province and Reddane Farm in Marirangwe, Mashonaland East province. The Integrators who include DenDairy, Nestle Zimbabwe and ProDairy will be responsible for the distribution of the animals to selected small-scale dairy farmers through a heifer matching facility.

Part of the heifers arriving at Reddane Farm in Marirangwe, Mashonaland East province.

One of TranzDVC’s key activities has been focusing on investments in productive assets to improve the performance of the dairy value chain in Zimbabwe through the Matching Grants Facility (MGF). The aim is to support investments to increase milk production and milk sales, participation by small-scale farmers in the dairy value chain, greening of manufacturing and production processes, decent job creation and local production of affordable feed. The facility is limited to capital investments in productive assets such as machinery, equipment and buildings and does not include finance for working capital and services.

To date, the project has implemented Window One of the MGF which seeks to co-finance investments with private sector actors, including large-scale processors and large-scale farmers serving as integrators. A total of USD92,00 has been disbursed to five dairy producers to purchase labour saving and renewable energy technologies.